Bitcoin is about promoting reform of the financial system to make it more efficient

At an expert forum titled "The Future of Bitcoin" held this afternoon at the TechCrunch International Innovation Summit in Shanghai, Li Qiyuan, CEO and co-founder of Bitcoin China; Liu Chengqi, director of OKCoin International Department; and Zennon Kapron, founder of Kapronaisa, discussed with us the present and future of Bitcoin.

You can look at the history of Bitcoin. In fact, China has always played a very important role. So if Bitcoin is to succeed in the future, China will undoubtedly play an important role. So now we are also discussing some opportunities and challenges, not only to understand the future of Bitcoin, but also the future of the entire financial industry. In terms of financial technology in China, there is Alipay and search companies like Baidu that have launched financial services. So whether it is financial innovation or Bitcoin, China plays a particularly important role.

Why should we care about Bitcoin?

Liu Chengqi: I think this is a question that everyone likes to ask. In fact, this question is not important, because you have Bitcoin, because it is not managed by any central bank, it is definitely volatile. But its advantage is that it can make financial transactions faster.

Let's take a simple example. If you go to a bank to transfer money, it will take three days, and there may be a handling fee and a limit. If you use Bitcoin as a backend, theoretically you can send a small amount of RMB or USD to someone else, in the currency they need. So, Bitcoin can be used as an intermediary. You don't necessarily have to have the currency you want to see and touch. Technology can make the connection in the air behind the scenes.

Why do we have Bitcoin?

Li Qiyuan: We live in this era, and no one can escape the Internet. Take photography for example. When I was young, photography was done with a 35mm lens or other high-precision lenses. For example, you go out to take photos, spend three days shooting, and then come back. In fact, with this process of photographic chemical imaging, your photographic works can be transmitted very quickly via email.

But if you look at it, it is completely different from the perspective of transmission. For example, if we look at film, there is no market for film anymore. We use mobile phones and digital cameras to take pictures. If you look at payment, in the past, payment was made with coins or banknotes. This is just the flow of money, but money is still a physical, concrete thing, issued by the central bank.

What does the first Bitcoin transaction in human history represent? This asset is no longer physical, but digital. Not only has the payment and transmission of money become networked, but the money itself has also become digital and electronic. So I think those who don’t know about Bitcoin should first understand this.

Can it replace cash in the future?

Li Qiyuan: It is too early now, and I don’t know when it will come. For example, asset classes, stocks, real estate, and heavy metals, etc., all belong to different asset classes. I think Bitcoin is also such an asset class. In fact, I think it has its own place.

Zennon Kapron: My perspective is different. The question you asked us is how many people in our audience have Bitcoin. But if you ask WeChat, how many people in the audience have WeChat, I think everyone uses WeChat. Why is that? Because WeChat is very convenient, basically we can use it every day. But Bitcoin is different. Bitcoin is not better than what we have now. It is just a better or more interesting and cooler thing. It does not really improve the use.

In fact, Bitcoin will be a new disruptor and competitor in the payment system. The final game is not just about Bitcoin, but to promote the reform of our financial system to make it more efficient and help our customers to implement financial services at more favorable prices.

If we only look at China, are there any large companies in China willing to use Bitcoin?

Li Qiyuan: For example, in terms of investment or payment, we are basically at the forefront of the world. For example, in China's stock market, everyone is a stockholder and everyone trades stocks.

Zennon Kapron: I have a mom test. You know, my mom doesn't like to use technology. Every time she buys coffee or goes to the supermarket, how can she be more accepting of using Bitcoin? If you only spend in the United States, you can use a credit card, which is very convenient. So how to attract this group of people who are not very technology-savvy and older, how to use Bitcoin. In addition to the usual alternative banknotes and coins, is there any other value?

Li Qiyuan: Many people make small payments, such as in convenience stores and supermarkets. For example, when shopping online, when the average customer spends, or when the amount exceeds one thousand US dollars, Bitcoin is still very useful in medium and large payments. In terms of cross-border remote payments, Bitcoin has advantages such as very low transaction prices or handling fees, and it is also very convenient to play out.

Finally, in the opinion of several people, China is the largest Bitcoin market, and the application prospects of Bitcoin are unlimited. But everyone should also remember that Bitcoin is not only a payment tool and medium, nor is it only an asset class, but also a very good product of technological innovation and finance. And this may be some unexpected surprises that tools like Alipay cannot bring to everyone.

This article Bitcoin game is to promote the reform of the financial system to become more efficient and automatic technology.